openPR Logo
Press release

United Kingdom Car Rental Industry Set for Strong Growth Driven by Rising Demand and Sustainability Trends

United Kingdom Car Rental Industry Set for Strong Growth Driven

The car rental industry in the United Kingdom, valued at USD 3,382.8 million in 2023, is poised for robust growth, with projections suggesting it will reach USD 6,146.1 million by 2034. This represents a compound annual growth rate (CAGR) of 5.6% from 2024 to 2034, according to a new market report from Future Market Insights (FMI).

Unlock exclusive insights - Request your sample report! https://www.futuremarketinsights.com/reports/sample/rep-gb-3043

Demand Surge in Key Segments: Tourism, Urbanization, and Sustainability

The UK's car rental sector is thriving due to several key market drivers, including growing demand from the tourism sector, increased urbanization, and an emphasis on sustainability.

Tourism and Heritage Travel: With its rich cultural heritage, the UK remains a top tourist destination. Travelers are increasingly turning to car rentals for flexible, cost-effective transportation to explore the country's historical landmarks, beautiful landscapes, and rural areas. The car rental market benefits from this growing tourism trend, particularly for intercity travel and exploring scenic destinations like Scotland's Highlands.

Urbanization & Changing Travel Patterns: As urbanization increases, many city dwellers are opting for car rentals for sporadic travel rather than owning vehicles. Congestion in major cities also drives demand for rentals, offering a more convenient and cost-effective alternative to private car ownership.

Sustainability and Eco-Friendly Solutions: Environmental concerns are reshaping the car rental industry in the UK. Rental companies are adapting by incorporating more electric and hybrid vehicles into their fleets, in response to stringent government emissions regulations and growing consumer demand for eco-friendly travel options.

Industry Trends & Technological Advancements

Technology is also playing a significant role in shaping the future of the car rental sector. The use of blockchain technology is improving the security and transparency of rental transactions, while digital platforms are streamlining the booking process, making rentals more convenient for consumers. In addition, the rise of contactless rentals and driverless technology are expected to further enhance customer experience and fuel industry expansion.

Segment Insights

Economy Cars: The economy car segment remains the most popular in the UK car rental industry, with a projected market share of 33% in 2024. These vehicles are favored by budget-conscious tourists due to their low rental costs, fuel efficiency, and suitability for urban environments. They are particularly in demand for short-term rentals and local travel.

Intercity Travel: The intercity segment is expected to capture a 39.8% market share in 2024. The UK's well-developed road network and growing preference for private transportation are driving demand for intercity car rentals. Tourists and local residents alike seek the flexibility and convenience of renting cars for journeys between cities, particularly as public transportation options are limited in certain areas.

Regional Insights

England: England's car rental industry is experiencing steady growth, fueled by rising demand for staycations, particularly following the pandemic. The government's push for low-emission zones in cities is encouraging rental companies to expand their fleets of electric and hybrid cars, in line with environmental targets.

Scotland: Scotland's growing tourism sector, particularly in rural areas, is significantly boosting demand for rental cars. The country's lack of widespread public transportation options in rural regions has made car rentals essential for tourists seeking to explore Scotland's landscapes and cultural sites.

Competitive Landscape

Leading players in the UK car rental market are focusing on several strategic initiatives to adapt to shifting market trends and evolving customer preferences. One key approach is expanding their fleets with electric and hybrid vehicles to meet the growing demand for eco-friendly transportation options.

Digital transformation is also a priority, with companies investing in mobile apps, contactless rental processes, and enhanced online booking platforms to improve the customer experience.

To offer more comprehensive mobility solutions, major players are prioritizing partnerships and collaborations with ride-hailing services and transportation networks. These efforts are aimed at ensuring long-term sustainability and maintaining a competitive edge in the rapidly changing automotive landscape.

Key players in the sector include:

• The Hertz Corporation
• Alamo Rent a Car
• Burnt Tree Vehicle Rental
• SP AutoReisen Rent a Car SL
• Avis Rent A Car System, LLC
• Cicar
• Thrifty Car Rental
• Dollar Rent A Car, Inc.
• Europcar Mobility Group
• Budget Rent a Car System, Inc.
• Lojas Centauro

Significant advancements in the car rental industry are being made by key industry participants, and these include:

In 2023, Hertz launched "Hertz Electrifies New York City," a public-private partnership aimed at expanding electric vehicle (EV) adoption and spreading the environmental and economic advantages of electrification throughout neighborhoods.

Hertz plans to add up to 1,700 rental EVs to its local fleet through the program, as well as 100 new jobs to support its expanding New York presence and EV education and training opportunities for students in collaboration with four public high schools.

As part of the collaboration, Hertz will provide five of its electric vehicles (EVs) to support New York City schools in their efforts to teach the future generation of auto mechanics through practical instruction.

Get Full Access of this Report: https://www.futuremarketinsights.com/reports/car-rental-in-uk

Key Segments Profiled in the Car Rental industry

By Car Type:

• Economy Cars
• Compact Cars
• Intermediate Cars
• Premium Cars
• Luxury Cars
• Others

By End Use:

• Intercity
• Intra-city
• On-Airport
• Others

By Sector:

• Organized
• Unorganized

By Country:

• England
• Scotland
• Wales
• Northern Ireland

Future Market Insights Inc.
Christiana Corporate, 200 Continental Drive,
Suite 401, Newark, Delaware - 19713, USA
T: +1-347-918-3531
For Sales Enquiries: sales@futuremarketinsights.com
Website: https://www.futuremarketinsights.com
LinkedIn| Twitter| Blogs | YouTube

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release United Kingdom Car Rental Industry Set for Strong Growth Driven by Rising Demand and Sustainability Trends here

News-ID: 3793343 • Views: …

More Releases from Future Market Insights Inc.

Global Inherited Orphan Blood Disorders Therapeutics Market to Grow at 9.0% CAGR from 2025 to 2035, Reaching USD 4.2 Billion by 2035.
Global Inherited Orphan Blood Disorders Therapeutics Market to Grow at 9.0% CAGR …
The global market for Inherited Orphan Blood Disorders Therapeutics is poised for substantial growth over the next decade, with projections estimating the market to expand from USD 1.8 billion in 2025 to USD 4.2 billion by 2035. This represents a compound annual growth rate (CAGR) of 9.0%, reflecting the increasing need for targeted therapeutic solutions for rare genetic blood disorders. Inherited orphan blood disorders, such as sickle cell anemia, thalassemia, and…
The Cardiovascular Surgical Devices Market: A Key Focus on Growth and Innovation in Cardiac Healthcare
The Cardiovascular Surgical Devices Market: A Key Focus on Growth and Innovation …
The cardiovascular surgical devices market is undergoing a dynamic transformation, offering significant opportunities for healthcare providers, medical device manufacturers, and patients alike. With an estimated market value of USD 57.9 billion in 2025, the sector is projected to experience robust growth, reaching USD 122.7 billion by 2035. This impressive expansion, at a compound annual growth rate (CAGR) of 7.8%, is propelled by a convergence of factors including the rising incidence…
Surgical Heart Valves Market Poised for Unprecedented Growth, Projected to Reach USD 36.6 Billion by 2035
Surgical Heart Valves Market Poised for Unprecedented Growth, Projected to Reach …
The surgical heart valves market is entering a new era of expansion, projected to grow from USD 8,897.2 million in 2025 to a staggering USD 36,625.0 million by 2035. With a remarkable compound annual growth rate (CAGR) of 15.2% during the forecast period, the sector is set to be one of the fastest-growing segments within the global cardiovascular medical devices industry. As the world grapples with rising cardiovascular disease rates…
Paediatric Oncology Therapeutics Market Set for Robust Growth, Projected to Reach USD 6.3 Billion by 2035
Paediatric Oncology Therapeutics Market Set for Robust Growth, Projected to Reac …
The global paediatric oncology therapeutics market is poised for significant growth, with a projected compound annual growth rate (CAGR) of 8.0%, reaching a market value of USD 6.3 billion by 2035, up from USD 2.9 billion in 2025. This surge is driven by the increasing prevalence of childhood cancers and the escalating demand for advanced, age-specific treatment options. As the global incidence of paediatric cancers rises, the need for effective, safe,…

All 5 Releases


More Releases for Car

Car Washing Services Market Is Booming So Rapidly with Mister Car Wash, Zips Car …
The Car Washing Services Market has been fragmented based on the productivity of several companies; therefore, each segment and its sub-segments are analyzed in the research report. Furthermore, the report offers 360 views on historical and upcoming growth based on volume, value, production, and consumption. Moreover, it classifies depend on sub-segments, key segments as per the significant regions and offers an in-depth analysis on the competitive edge of the market.…
Car Wash Service Market Boosting the Growth Worldwide: Auto Bell Car Wash, Miste …
The latest study released on the Global Car Wash Service Market by AMA Research evaluates market size, trend, and forecast to 2027. The Car Wash Service market study covers significant research data and proofs to be a handy resource document for managers, analysts, industry experts and other key people to have ready-to-access and self-analyzed study to help understand market trends, growth drivers, opportunities and upcoming challenges and about the competitors. Key…
Car Rental Services Market Forecast to 2028 Covid-19 Impact and Global Analysis …
Car rental services are a process of hiring/renting a car for a limited period from a rental company. Various companies like Uber Technologies, Europcar rent the vehicles for a short period ranging from few hours to weeks. The different types of cars rented by the company include Luxury Car, executive car, and economical car among others. Additionally, vehicle renting agencies also offer other products such as insurance, entertainment systems, and…
Car Rentals Market Growth Strategies and Innovative Technology Transformation by …
Worldwide Market Reports has announced the addition of the "Car Rentals Market Report 2020-2027 Production, Sales And Consumption Status And Prospects Professional Research", The report classifies the global Car Rentals Market in a precise manner to offer detailed insights about the aspects responsible for augmenting as well as restraining market growth. The emergence of own-brand digital ordering platform has been trending in the global Car Rentals market. Car Rentals such as…
Luxury Car Leasing Market Competitors Analysis By German Rent A Car, ANI Technol …
 'Global Luxury Car Leasing Market Research Report' the report is complete with an elaborate research undertaken by prominent analysts and a detailed analysis of the global industry place. The Luxury Car Leasing report is fragmented in several features which include manufacturers, region, type, application, market status, market share, growth rate, future trends, market drivers, opportunities, challenges, emerging trends, risks, entry barriers, sales channels, and distributors which are again elaborated in…
Car Wash Market is Thriving Worldwide 2026 | Super Star Car Wash, Autobell Car W …
This Car Wash Market research report offers you an array of insights about Automotive industry and business solutions that will support to stay ahead of the competition. Systematic investment analysis is also underlined in this Car Wash Market report which forecasts impending opportunities for the market players.This market report is the outcome of persistent efforts lead by knowledgeable forecasters, innovative analysts and brilliant researchers who carries out detailed and diligent…